In a recent government land sales (GLS) tender, developers UOL Group and Singapore Land Group (SingLand) emerged victorious with a top bid of $1,616 per square foot per plot ratio (psf ppr) for a coveted site at Orchard Boulevard. Here's a closer look at this significant development:
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Top Bid: UOL and SingLand's joint venture secured the site with a bid of $428.28 million, marking a premium price of $1,616 psf ppr, just 2.46% higher than the next highest bid by Allgreen Properties.
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Prime Location: Situated at Orchard Boulevard, the 99-year leasehold site spans 75,686 square feet and is designated for residential development with commercial use on the ground floor. Its strategic positioning offers direct connectivity to the Orchard Boulevard MRT station.
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Luxury Condo Project: The developers plan to construct a 36-storey high-rise luxury condominium, leveraging the site's panoramic views and prime location within the Core Central Region (CCR) of Singapore.
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Confidence in CCR: The robust bid reflects developers' growing confidence in the CCR, particularly following the success of projects like Watten House, which achieved strong results and prices.
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Market Trends: The bid for the Orchard Boulevard site indicates developers' recognition of evolving market dynamics, including increased risks and higher development costs compared to previous years.
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Comparison with Past Sales: The bid of $1,616 psf ppr is notably lower than the $2,377 psf ppr paid for the adjacent Cuscaden Reserve site six years ago, reflecting changing market conditions and regulatory factors.
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Continued Development: Despite challenges, developers remain committed to prime locations like Orchard Boulevard, as demonstrated by ongoing and planned projects in the area.
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Implications for Buyers: This development underscores the evolving landscape for property buyers, highlighting the importance of staying informed about market trends and opportunities.
The successful bid by UOL and Singapore Land for the Orchard Boulevard site signals continued confidence in Singapore's prime real estate market, despite challenges such as increased costs and regulatory measures. The bid reflects developers' strategic vision and underscores the enduring appeal of luxury residential projects in coveted locations like Orchard Road.
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Source: The Edge Property